Quick off the Wall Tax question for parents

Illini_Fan
Thu, 31 Jan 2008 17:19:42 +0000

The kiddie-tax, which used to apply to children 14 and under applies to children 18 and under as of last year if I remember right, spells out the different options of how and when you can claim a child’s income on your return. I’ve always found that having my son claim his own income, even if it was not earned-income (i.e. capital gains or interest) was more beneficial than trying to include that income on my return. I’m over-simplifying, but effectively, my marginal tax rate is a couple of brackets above the marginal rate my son is in.